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In a big industry the numbers of factors influencing a decision have increased situation has become big and complex because these factors interact with each other in complicated fashion. There is thus great uncertainty about the outcome of interaction of factors like technological environmental competitive etc. For instance consider a factory production schedule which has to take into account.
a. Customer demand.
b. Requirements of raw materials.
c. Equipment capacity and possibility of equipment failure and
d. Restrictions on manufacturing process
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A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y pa
A paper mill produces two grades of paper viz., X & Y. Because of raw material restrictions, it cannot produce more 400 tons of grade X paper & 300 tons of grade Y paper in a week.
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